Bitcoin prices fell on Friday, erasing recent gains linked to the highly anticipated approval of exchange-traded funds (ETFs) supporting the cryptocurrency and another interesting case of Bitcoin falling after good news for the asset. .Thank you for reading this post, don't forget to subscribe!
There was no confetti falling for Bitcoin investors on Friday. Picture BlackRock executives ringing the bell… [+] Nasdaq’s opening bell rang on Thursday, celebrating the launch of the company’s spot Bitcoin ETF.
Bitcoin was down nearly 7% by midday, trading near $43,000.
According to data from Yahoo Finance, this would be Bitcoin’s biggest daily loss since August and its second-worst day since November 2022, following FTX’s disclosure. (Bitcoin trades continuously and daily movements are typically plotted against the Greenwich Mean. is tracked over time).
11 spot Bitcoin ETFs suffer massive losses two days after US regulators gave them the green light Many expect this to drive up Bitcoin’s value as it vastly increases access for potential investors Bitcoin falls on rumor buying by investors And it appears to be a matter of sale. news.
Although Bitcoin is now trading at its lowest level in a week, it has retained most of the gains associated with the ETF hype; Bitcoin is up nearly 130% over the past 12 months and is still at its highest level since April 2022, excluding the past two weeks.
“The crypto market has already moved to the next narrative,” Citi analyst Alex Saunders explained to clients in a Friday note seen by CNBC. Major stock indexes and government bond yields were largely unchanged on Friday.
Saunders pointed to the comparatively strong returns recently posted by Ether, the world’s second-largest cryptocurrency by market cap, as evidence that markets are already tracking the price of Ether in a similar manner. The focus is again on the possibility of future approval for ETFs. Ether prices are up 16% this week, far outpacing Bitcoin’s 0.2% gain during the period.
Other examples of Bitcoin price declines when a long-awaited boon was announced include a selloff of nearly 15% in April 2021 when crypto exchange Coinbase went public and a selloff of nearly 10% in October 2021 upon the approval of the first ETF tied to Bitcoin futures contracts. % declined. Additionally, public stocks are closely linked to crypto due to the decline so far in 2024. Shares of Block, Coinbase and Robinhood have fallen more than 10% year to date, far less than the tech-heavy Nasdaq’s 0.5% gain this year. Bitcoin prices declined by approximately 65% in 2022 as bankruptcies hit the crypto industry and macroeconomic conditions worsened.
Approximately $4.5 billion. That’s how much inflows there were into spot Bitcoin ETFs during the early day of trading on Thursday. Funds from Grayscale and BlackRock attracted the most volumes.
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